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Arcos Dorados Holdings (BUE:ARCO) Cyclically Adjusted PB Ratio : 5.93 (As of May. 24, 2024)


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What is Arcos Dorados Holdings Cyclically Adjusted PB Ratio?

As of today (2024-05-24), Arcos Dorados Holdings's current share price is ARS24845.50. Arcos Dorados Holdings's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was ARS4,190.40. Arcos Dorados Holdings's Cyclically Adjusted PB Ratio for today is 5.93.

The historical rank and industry rank for Arcos Dorados Holdings's Cyclically Adjusted PB Ratio or its related term are showing as below:

BUE:ARCO' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.15   Med: 3   Max: 6.58
Current: 5.03

During the past years, Arcos Dorados Holdings's highest Cyclically Adjusted PB Ratio was 6.58. The lowest was 1.15. And the median was 3.00.

BUE:ARCO's Cyclically Adjusted PB Ratio is ranked worse than
79.13% of 230 companies
in the Restaurants industry
Industry Median: 2.055 vs BUE:ARCO: 5.03

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Arcos Dorados Holdings's adjusted book value per share data for the three months ended in Mar. 2024 was ARS1,938.745. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is ARS4,190.40 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Arcos Dorados Holdings Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Arcos Dorados Holdings's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arcos Dorados Holdings Cyclically Adjusted PB Ratio Chart

Arcos Dorados Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.03 2.06 2.58 3.98 6.49

Arcos Dorados Holdings Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.72 5.02 4.71 6.49 5.69

Competitive Comparison of Arcos Dorados Holdings's Cyclically Adjusted PB Ratio

For the Restaurants subindustry, Arcos Dorados Holdings's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arcos Dorados Holdings's Cyclically Adjusted PB Ratio Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Arcos Dorados Holdings's Cyclically Adjusted PB Ratio falls into.



Arcos Dorados Holdings Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Arcos Dorados Holdings's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=24845.50/4190.4
=5.93

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Arcos Dorados Holdings's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Arcos Dorados Holdings's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=1938.745/131.7762*131.7762
=1,938.745

Current CPI (Mar. 2024) = 131.7762.

Arcos Dorados Holdings Quarterly Data

Book Value per Share CPI Adj_Book
201406 19.606 100.560 25.692
201409 18.287 100.428 23.995
201412 18.083 99.070 24.053
201503 15.664 99.621 20.720
201506 16.107 100.684 21.081
201509 13.145 100.392 17.254
201512 17.123 99.792 22.611
201603 19.973 100.470 26.196
201606 21.776 101.688 28.219
201609 23.235 101.861 30.059
201612 25.692 101.863 33.237
201703 29.796 102.862 38.171
201706 31.279 103.349 39.883
201709 35.084 104.136 44.396
201712 43.627 104.011 55.273
201803 43.060 105.290 53.892
201806 46.100 106.317 57.139
201809 70.139 106.507 86.780
201812 70.137 105.998 87.194
201903 68.171 107.251 83.760
201906 80.913 108.070 98.663
201909 99.541 108.329 121.086
201912 120.017 108.420 145.871
202003 77.247 108.902 93.473
202006 54.167 108.767 65.626
202009 54.829 109.815 65.794
202012 76.471 109.897 91.696
202103 69.371 111.754 81.799
202106 78.952 114.631 90.760
202109 86.441 115.734 98.423
202112 105.765 117.630 118.485
202203 121.812 121.301 132.331
202206 122.124 125.017 128.727
202209 159.396 125.227 167.733
202212 257.629 125.222 271.114
202303 332.430 127.348 343.990
202306 459.862 128.729 470.749
202309 733.878 129.860 744.710
202312 883.038 129.419 899.119
202403 1,938.745 131.776 1,938.745

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Arcos Dorados Holdings  (BUE:ARCO) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Arcos Dorados Holdings Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Arcos Dorados Holdings's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Arcos Dorados Holdings (BUE:ARCO) Business Description

Traded in Other Exchanges
Address
Dr. Luis Bonavita 1294, Office 501, WTC Free Zone, Montevideo, URY, 11300
Arcos Dorados Holdings Inc operates McDonald's-branded restaurants in approximately 20 countries and territories in Latin America and the Caribbean. It functions through two sources which include company-operated restaurants and franchised restaurants segment. Their menu includes hamburgers, McNuggets, salad, sandwiches, french fries and others.

Arcos Dorados Holdings (BUE:ARCO) Headlines